Can India become major player in ship-building

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Topic: Can India become major player in ship-building

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Vivek Sukhani
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Posted: 22/Oct/2007 at 10:00am

smartcat, why will order generate for smaller ships at all? IMO will not allow it to ply at all. All the single hulls will have to go to scrapyards as all tanker companies are now trying to convert them into dry bulk vessel to capitalise on the ongoing demand in dry bulk. Fresh orders for single hulls will practically have no possibility. This may be a blessing for ship builders asthe scrap may become cheap owing to supply. Read this article at bloomberg.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aACeVPlPw2mM

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Vivek Sukhani
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Posted: 22/Oct/2007 at 10:02am

Smaller size double hulls are not too much in vogue. So, smaller ships will face increased competition.

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smartcat
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Posted: 23/Oct/2007 at 12:54pm

Vivek, what I meant to say was - big shipyards in Korea are busy building double hulled VLCCs. They do not have inclination to take care of demand for ships of smaller size (not crude carriers, just cargo). When something like that happens, shipping companies will look at economies like India/China which has decent shipbuilding capabilities at relatively lower cost.

If Vijay Mallya and Richard Branson walk into your store, you will obviously look into their requirements first. When Kulman and myself walk into your store, you will either ignore us or make us wait. So we will obviously walk out of your store and go to the local kirana store.

``It got so bad that, on one voyage from Sweden to Venezuela, we turned the engine off and went with the current down to the Caribbean because fuel was so expensive,'' said Mansson, 55. ``We got a telegram from Exxon to go at 7 knots, so we just floated down.''

This is really funny. I didn't know that we could switch off the engine and make the ship roll down a hill like an autorickshaw

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basant
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Posted: 23/Oct/2007 at 1:57pm

Thank God Exxon does not run aeroplanes!

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

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kulman
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Posted: 23/Oct/2007 at 2:26pm

Thank God Exxon does not run aeroplanes!

--------------------------------------------

HA HA HA ....

Free Fall...........

Life can only be understood backwards—but it must be lived forwards

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kulman
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Posted: 25/Oct/2007 at 7:15pm

Ambitious Chinese shipyards plan to tap eager equity markets in coming years to ride a global trade boom, but investors should be wary about risks of a worldwide capacity glut by 2010.

China's shipbuilders - now cranking out everything from hulking supertankers to intricate vessels that ferry liquid gas - are enjoying their best years ever as the country devours resources and the world snaps up its cheap goods.

China won new orders for 1,064 vessels of 67.4 million deadweight tons (dwt) in the first eight months - 43 per cent of the global total, Clarkson Research estimated.

Some analysts believe that the strong momentum on shipyard stocks should continue as many players have locked in contracts at record prices for projects which may take some years to complete.

'Definitely, Chinese shipbuilding is a high growth market but there is some uncertainties whether there will be a capacity glut three, four years down the road,' said Mirae Asset's Mr Cheng

www.businesstimes.com.sg/sub/shippingtimes/story/0,4574,254026,00.html?

Life can only be understood backwards—but it must be lived forwards

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smartcat
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Posted: 25/Oct/2007 at 7:19pm

2010 is the year you should probably exit Bharati Shipyard. I will get out of Aban Offshore (rig glut again, after 2010). Or else, we will end up in Deep Sea.

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kulman
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Posted: 25/Oct/2007 at 7:39pm

Yeah .....I'm thinking about the same.

I would then consolidate my partnerships with either Anil or Mukesh as these two chaps seem to be good allocators of capital.

Life can only be understood backwards—but it must be lived forwards

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